SNPS: preparation for the amended pension scheme
In summer 2024, Shell Netherlands and the Central Works Council (COR) arrived at a decision about the implementation of the Future Pensions Act (Wet toekomst pensioenen - Wtp) in the SNPS pension scheme. They submitted a transition plan to the board of SNPS on the basis of this decision. The plan instructed the board to make the relevant changes to the pension scheme. SNPS then prepared an implementation plan and submitted it to the Dutch Central Bank (De Nederlandsche Bank - DNB) for approval. A communication plan was submitted to the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten - AFM) at the same time.
The full implementation plan will be made available here before 14 Januari 2025.
The text of the transition plan is available on www.nieuwpensioenbijshell.nl.
What does this mean for you?
Our goal is to switch to an amended pension scheme on 1 January 2026. Very little will change for SNPS participants because SNPS adopted the principles of the Wtp back in 2013. So, the pension capital you have already accrued will stay the same. There will be no changes to pensions in payment either.
Scroll down to read what this means for you.
Principles and process
SNPS has sound project and risk management in place and we are working closely with Shell Netherlands, Achmea Pensioenservices (APS) and Achmea Investment Management (AIM) to make sure the transition to the amended pension scheme is problem-free. The communication plan has been submitted to the SNPS Accountability Body for its advice.
Innovative communication plan
The communication plan is based on our standard communication policy and strategy. The plan shows how we will guide participants through the upcoming Wtp changes and keep them up-to-date on the changes to the pension scheme. The aim is to inform participants and make them aware of the amended pension scheme. We also want to maintain trust and activate participants to play an active role in their pension. We will achieve this by building on the experience we have gained with the current SNPS scheme since 2013. The principle is and will continue to be that participants themselves will explore, consider and make their pension choices themselves.
The most important points from the communication plan:
• Transparency and engagement: our focus is on open channels of communication and regular updates to increase engagement.
• Modern technologies: we are investing in new communication tools and platforms, e.g. our new CARE programme (read more below).
• Training and development: we are offering e-learnings to help you choose between the available choices.
Moving towards your new pension, together
We want to make sure we give you the guidance you need during the transition to the amended pension scheme. To help you through the transition, we offer you the Shell Pension CARE programme (Comfort and Retirement Ease). It will guide you step by step to your new pension, via e-mails, webinars, meetings and even personal assistance g if you need it. In the programme, we will share information in a way that suits you. So, make sure we are able to contact you! Please leave your e-mail address and mobile phone number on my-Shell pension and set your preferred communication method to digital.
The next steps
Your personal situation will determine exactly much changes for you. We will only be able to give you a better idea of what your personal situation will be just before the actual transition to the new scheme (the end of 2025). You will be informed about this. However, we will keep you up-to-date on progress as much as we can.
See below the information that applies to you
You will continue to accrue a personal pension capital
You and your employer pay a monthly contribution for this purpose. These contributions are invested for you. This is why the value of your pension is not known in advance. You will still be able to opt for either a fixed or variable pension.
What will change?
Your employer will pay a fixed contribution of 21%; the percentage will not be linked to your age anymore
If you find that you are accruing less pension after the transition to the amended pension scheme, you may be entitled to compensation that is paid to you via your salary. Some participants will accrue less pension than they would have done in the current scheme. You will also receive an extra financial supplement to make sure your position continues to be similar to that of new employees. You will receive this compensation as long as you work for Shell.
You can choose how much you want to contribute to your pension: between 2% and 9%
Your employer will continue to pay the bulk of the contribution: 21%. From now on, you will be able to decide how much extra you want to contribute to your pension. Unless informed otherwise, your employer will assume an employee contribution of 7% (2% mandatory employee contribution and 5% voluntary employee contribution). You will also be able to choose to increase your voluntary employee contribution to 9%.
Proper pension arrangements still in place in the event of death and disability but some things will change
If you pass away, your partner will receive a percentage (35%) of your pensionable salary (up to the fiscal limit) every year. So, the percentage will no longer depend on your years of service with Shell. There will also continue to be a temporary supplementary partner’s pension.
Are you leaving Shell’s employment but not retiring yet? In this situation, you will automatically be insured for a partner’s pension for 3 months.
In principle, there will be no changes to the disability insurance policies. However, the disability pension will not be administered by the pension fund in the future but become an addition to the existing sickness and reintegration policy at Shell Netherlands.
There will be no changes to your pension benefit or accrued capital.